From Uche Usim, Abuja
The Securities and Exchange Commission (SEC) Monday wrote the management of the Oando Plc, revealing gross insider dealings and other alleged unwholesome practices that forced it to wield the big stick.
The letter is coming as anxious stakeholders await the outcome of the forensic audit of the embattled oil firm,
The SEC letter dated October 17 on “Re-Serious Concern To Corporate Governance Existence, Gross Abuse of Corporate Governance And Financial Mismanagement In Oando Plc”, signed by Head, Legal Department, Mrs. Braimoh Anastsia was addressed to the Group Chief Executive Officer (GCEO), Adewale Tinubu.
It stated that there was outright disregard for rules and regulations, especially the mis-statements in the 2013 and 2014 audited financial statement of Oando Plc arising from the OEPL transaction.
According to SEC: “Following the structuring of the OEPL transaction in contravention of the ISA 2007, Oando Plc recorded a profit of about N6 billion from the sale of OEPL that erased the operating loss of N4.68 billion leading to a profit of N1.4 billion for the year 2013.
“The company subsequently declared dividends from the profit. Having admitted that the action was in breach of the ISA 2007, Oando Plc restated its 2013 & 2014 Audited Financial Statements which contained material false and misleading information contrary to Section 60(2) of the ISA 2007.
The Commission added: “The commission finds from the Corporate Governance return submitted by the company for the period ended December 31st, 2016 that the remuneration of the Group Executive Officer (GCEO) and the Deputy GCEO were approved by the Board while the GCEO was responsible for fixing the remuneration of other Executive Directors which is in violation of part 3, 143 of the SEC Code of Corporate Governance”.
SEC explained that the last board evaluation of Oando Plc was done by KPMG in 2012, adding that “this is a violation of Part B, 15.1 of the SEC Code of Corporate Governance.